PHOENIX (dpa-AFX) - Activist investor Carl Icahn has disclosed an 8.46 percent stake in mining and oil company Freeport-McMoRan Inc (FCX), as per a filing with the Securities and Exchange Commission on Thursday.
Icahn said he believes Freeport shares are undervalued, and he plans hold talks with the company relating to its capital expenditures, executive compensation practices and capital structure as well as curtailment of high-cost production operations.
Icahn may also said he may seek board representation and to discuss the size and composition of the company's board.
Icahn's disclosure comes after Freeport earlier today said it will reduce its U.S. workforce by 10 percent as part of efforts to cut costs, and will cut its capital expenditure in 2016 by 29 percent.
The company's decision stems from a plunge in commodity prices such as copper and oil.
Freeport said in a statement that it maintains an open dialogue with shareholders and welcomes constructive input toward enhancing shareholder value.
The company now expects capital spending of $4 billion in 2016, down 29% from its prior estimate of $5.6 billion.
It also will cut 2016 and 2017 copper production by 150 million pounds from prior estimate.
Freeport views the long-term outlook for its business positively, supported by limitations on supplies of copper and requirements for copper in the world's economy.
For the near-term, the company said it must respond aggressively to current market conditions by deferring investments and adjusting operations to maximize current cash flow under weak market conditions.
Freeport said it will continue to assess opportunities to partner with strategic investors interested in investing capital in the development of its oil and gas and its mining properties.
FCX closed Thursday at $10.19, up $2.27 or 28.66%, on the NYSE. In after hours, the stock gained $1.70 or 16.68% at $11.89.
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